Amazon To Acquire MGM in $8.45 Billion Deal

One of the oldest Hollywood studios is gaining new ownership, as Amazon has entered a deal to purchase MGM for $8.45 billion. It was announced today that the two companies have entered into a definite merger agreement which will bring the studio behind the 007 and Rocky franchises along with The Hobbit, Candyman, The Handmaid’s Tale, Tomb Raider and more under Amazon’s umbrella.

“It has been an honor to have been a part of the incredible transformation of Metro Goldwyn Mayer. To get here took immensely talented people with a true belief in one vision. On behalf of the Board, I would like to thank the MGM team who have helped us arrive at this historic day,” Chairman of the Board of Directors of MGM, Kevin Ulrich said in a statement. “I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”

MGM has been looking to sell since December, and Amazon has been looking for something to bolster its film library for Amazon Prime. This deal certainly does that; MGM’s film library is 4,000 strong and in addition to the above franchises includes the likes of 12 Angry Men, Legally Blonde, Poltergeist, RoboCop, Silence of the Lambs, Stargate, The Pink Panther, Raging Bull, and Creed. The library also includes 17,000 shows such as Fargo and Vikings as well as the pay cable network Epix.

“MGM has a vast catalog with more than 4,000 films … as well as 17,000 TV shows … that have collectively won more than 180 Academy Awards and 100 Emmys,” Senior Vice President of Prime Video and Amazon Studios, Mike Hopkins said. “The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team. It’s very exciting and provides so many opportunities for high-quality storytelling.”

Among the upcoming films that MGM has the rights to are G.I. Joe spinoff Snake Eyes, Aretha Franklin biopic Respect, the Candyman sequel, Creed III, Ridley Scott’s House of Gucci, the Alicia Vikander-led Tomb Raider, and the third Legally Blonde film. It was reported earlier this week that the Amazon-MGM talks wouldn’t disrupt the theatrical plans for No Time to Die, which is set to bow in theaters on October 8th.

Like any big merger, the Justice Department will have to weigh in and while Deadline reports that several lawmakers reacted negatively to the news of Amazon acquiring another major property of industry, there is unlikely to be much they can do given current antitrust laws to block such a deal.